BANKING & INSOLVENCY

Protect. Negotiate. Respond.

Representation in DRT, DRAT, SARFAESI, banking recovery, NCLT, NCLAT and insolvency-related matters.

CG Legal advises and represents borrowers, businesses and other stakeholders in matters involving banks and financial institutions, recovery proceedings, enforcement of security interests, settlement negotiations, corporate distress and insolvency proceedings.

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WHEN A FINANCIAL PROBLEM BECOMES A LEGAL PROBLEM

Banking disputes can move quickly.

A financial difficulty can develop into a legal matter — from repayment issues and bank communications to demand notices, possession proceedings, auction, recovery proceedings or insolvency action.

At that stage, understanding the underlying financial documents, account history, security, notices, payments and legal process becomes important.

CG Legal examines the circumstances of the matter to identify the legal issues, procedural position and available options.

DRT · SARFAESI · RECOVERY · OTS

BANKING MATTERS CAN ARISE AT DIFFERENT STAGES

The legal position can change as the matter progresses.

Before enforcement

Loan documentation, security, repayment issues, account-related concerns and communication with financial institutions.

When financial stress develops

Default, demand notices, account-related disputes, settlement discussions and restructuring.

When enforcement begins

SARFAESI proceedings, possession, sale notices and auction of secured assets.

When the matter reaches the Tribunal

DRT proceedings, applications, interim relief and related proceedings.

When an appeal becomes necessary

Appropriate appellate proceedings before the DRAT or NCLAT, depending on the nature of the matter.

When corporate distress develops

NCLT and insolvency-related proceedings involving companies, creditors and other stakeholders.

OUR BANKING & INSOLVENCY PRACTICE

DRT, SARFAESI, Recovery & Insolvency

01 — DRT & Recovery Proceedings

Representation in appropriate proceedings before the Debt Recovery Tribunal (DRT) under the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act), including recovery claims, secured assets, SARFAESI-related matters, possession, auction and connected proceedings.

02 — DRAT Appeals & Proceedings

Representation in appropriate appellate proceedings before the Debt Recovery Appellate Tribunal (DRAT) arising from matters under the RDB Act, SARFAESI Act and other applicable laws.

03 — SARFAESI & Secured Assets

Advice and representation concerning demand notices, possession proceedings, secured properties, sale notices, e-auctions and related legal remedies.

04 — Banking & Financial Institution Disputes

Matters involving recovery claims, loan-related disputes, security and collateral issues and other disputes involving banks and financial institutions.

05 — OTS, Settlement & Restructuring

Assistance with One-Time Settlement proposals, settlement discussions, restructuring arrangements and related documentation.

06 — NCLT & Corporate Insolvency

Representation in appropriate proceedings before the National Company Law Tribunal involving corporate distress, creditors, financial institutions and insolvency-related matters.

07 — NCLAT Appeals & Proceedings

Representation in appropriate appellate proceedings before the National Company Law Appellate Tribunal arising from NCLT matters.

08 — Related High Court Proceedings

Appropriate proceedings before the High Court arising from banking, recovery, SARFAESI or insolvency-related matters.

UNDERSTANDING SARFAESI & RECOVERY PROCEEDINGS

When enforcement action affects a secured asset

Depending on the circumstances, a recovery matter may involve several stages:

Demand Notice (Reply Mandatory U/s 13(13A))
↓
Possession Proceedings (Appeal U/s 17)
↓
Sale / Auction / Section 14 (Appeal U/s 17)
↓
DRT Proceedings
↓
DRAT / Other Appropriate Proceedings

Each stage can raise different legal and procedural questions.

The relevant loan documents, account history, security, payments, notices, and actions taken by the financial institution may all need to be examined.

Received a SARFAESI demand notice or possession notice? Or a sale notice? Or a CJM sec 14 order?

Discuss Your Matter →

The procedure and available remedies depend on the nature of the proceedings and the facts of each matter.

FINANCIAL DISTRESS DOES NOT ALWAYS MEAN LITIGATION

Resolution can take different forms.

Depending on the circumstances, a matter may involve:

NEGOTIATE

OTS and settlement discussions with the relevant financial institution.

RESTRUCTURE

Exploring appropriate restructuring or repayment arrangements.

RESPOND

Addressing recovery, SARFAESI or tribunal proceedings.

LITIGATE

Pursuing appropriate legal proceedings where necessary.

The appropriate course depends on the financial position, legal circumstances, stage of proceedings and objectives of the client.

WHEN SHOULD YOU SEEK LEGAL ADVICE?

Early advice can matter.

You may wish to seek legal advice when:

You receive a bank demand notice
Your account has been classified as NPA
You receive a SARFAESI demand notice
A possession notice is issued
An e-auction/sale notice is issued
A secured property is proposed for auction
A Section 14 order is issued to take physical possession of your property
You disagree with the amount claimed
You are considering an OTS
Settlement negotiations have stalled
You receive DRT proceedings
You receive a DRAT-related matter
You receive an NCLT or insolvency-related notice
You need to respond to an NCLAT matter
An order has already been passed
You need to consider an appeal or further proceedings

HOW CG LEGAL APPROACHES BANKING MATTERS

Examine. Assess. Negotiate. Represent.

01 — EXAMINE

We examine loan documents, account information, security documents, notices, correspondence, payments, and the procedural history of the matter.

02 — ASSESS

We identify the relevant legal issues, financial exposure, procedural position and available remedies.

03 — NEGOTIATE

Where appropriate, we explore OTS, settlement, restructuring or other possible resolution options.

04 — REPRESENT

Where proceedings are required, we represent the client before the appropriate tribunal or court.

ONE FINANCIAL MATTER CAN INVOLVE SEVERAL LEGAL DIMENSIONS

Banking matters rarely remain confined to one area of law.

Bank Recovery

Bank default
→ SARFAESI
→ DRT/RDB
→ Settlement / Further Proceedings

Secured Property

Possession
→ Auction
→ Sale-related dispute
→ DRT / DRAT / Appropriate Court

Corporate Financial Distress

Financial difficulty
→ Creditor action
→ NCLT
→ Insolvency Proceedings
→ NCLAT, where applicable

Commercial Dispute

Contractual obligation
→ Financial exposure
→ Recovery
→ Dispute Resolution

One matter. Several legal dimensions.

Who We Represent

Borrowers

Individuals and entities facing recovery or enforcement action.

Entrepreneurs & Founders

Business owners dealing with financial obligations, banking disputes or business distress.

MSMEs & Family Businesses

Businesses navigating bank recovery, secured assets, settlement and related proceedings.

Companies & Organisations

Businesses facing financial, recovery or insolvency-related issues.

Property Owners & Guarantors

Persons whose property or obligations are connected with secured lending arrangements.

Other Stakeholders

Creditors and other stakeholders in appropriate banking, NCLT and insolvency-related matters.

Financial disputes can affect businesses, property, operations and future decisions. Our approach considers the wider legal and commercial context of the matter.

Frequently asked questions

What is the Debt Recovery Tribunal?

The Debt Recovery Tribunal is a specialised forum dealing with specified matters relating to recovery of debts and related proceedings under applicable legislation.

Can SARFAESI action be challenged before the DRT?

The availability and nature of a remedy depends on the action taken, applicable law and circumstances of the matter. Appropriate proceedings may be available before the DRT in matters falling within its jurisdiction.

What should I do after receiving a possession notice?

The notice, underlying documents, security, account position and stage of proceedings should be examined promptly so that the available legal options can be identified.

What is a Section 14 proceeding under SARFAESI?

Section 14 of the SARFAESI Act provides a statutory mechanism through which a secured creditor may seek the assistance of the Chief Metropolitan Magistrate or District Magistrate, as applicable, for taking possession of secured assets in accordance with the requirements of the Act.

Does CG Legal handle NCLT and NCLAT matters?

CG Legal handles appropriate NCLT and NCLAT matters involving corporate distress, insolvency and related proceedings.

Can a bank auction be challenged?

The availability of a remedy depends on the circumstances, stage of the auction and applicable law. The relevant notices, procedure and underlying documents should be examined.

Can CG Legal assist with an OTS?

Yes. CG Legal can assist with evaluating, negotiating and documenting OTS or other settlement proposals, depending on the circumstances.

What happens if a DRT order has already been passed?

The order and procedural history should be examined to determine what remedies, including appropriate appellate or other proceedings, may be available.